The incident occurred at Kiewa Crescent, Dallas around 9am (AEST) this morning when a 29-year-old man tried to start his Ford Mondeo, Victoria Police said.
It is believed a small device placed underneath the car triggered the explosion, leaving the man with serious injuries to his legs.
Video posted by neighbour Kylie Mcemmy shows people from across the street run to the burning vehicle as small blasts occur and the car's horn continually sounds.
About a minute-and-a-half into the footage a fire truck arrives at the scene before an ambulance arrives.
Shortly after police evacuated residents from the street as the bomb squad moved in to secure the area.
May 29, 2014: A man whose car exploded as he tried to start it in his Melbourne driveway has been seriously injured.
"When we were evacuated by police they told me all the bombs might not have gone off," neighbour Kylie Gray told the Herald Sun.
"There was a huge bang and the entire house shook. It felt like an earthquake."
The man was taken to Royal Melbourne Hospital with non-life threatening injuries.
Local detectives and bomb squad officers are investigating the incident.
Sources: Victoria Police, Herald Sun
Author: Jack Hawke, Approving editor: Simon Black
Police have set up a crime scene around the exploded car (Twitter).
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